Entertainment One boosted by film acquisition

 
Oliver Smith
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ENTERTAINMENT One, the film and television distributor, reported record revenue growth of more than 65 per cent yesterday after the company’s acquisition of its largest Canadian competitor was completed in January.

“It’s been transformational for the business,” chief executive Darren Throop told City AM.

Throop said the purchase of Alliance Film is on track to deliver for investors and described the integration between the two companies as solid. The FTSE 250 company saw profit increase to £1.1m in the six months to 30 September, from £1m last year.

Entertainment One’s TV division reported four per cent revenue growth on the back of season renewals and the signing of an exclusive three year distribution deal with US cable company AMC Networks.

“AMC is arguably the hottest network in the world and the deal really speaks to the credibility of our group,” said Throop.

The company also reiterated its commitment to paying a full year dividend.

JP Morgan Cazenove raised its target price for Entertainment One from 274p to 280p, saying: “The increase in our target price is mainly driven by an increase in the multiples we apply to the core Film business as we update our sum-of-the-parts analysis to reflect current multiples. Our high-end Blue Sky analysis implies a valuation of 329p.”

Entertainment One’s share price edged down 0.2 per cent yesterday on the news to close at 241.5p a share.